U.S. Voting Advisory Firm recommends to Vote Against the Incumbent Chairman
April 9, 2020
Nikkei learned on April 9, 2020 that the U.S. proxy voting advisory firm Glass Lewis had issued voting recommendations for the April 23, 2020 Sekisui House annual meeting of shareholders to vote against the top four incumbent directors including Mr. Toshinori Abe. The report cited as the recommendation reason the company’s insufficient information disclosure and weak internal control over a condominium site fraud. On the other hand, Glass Lewis supported the election of four dissident slate directors, including former Chairman Isami Wada. The general meeting of shareholders will be held on April 23, 2020.
Sekisui House has proposed the election of 12 directors for the shareholders meeting. Glass Lewis recommended that shareholders vote against the reelection of four incumbent directors, including Chairman Abe and President Nakai. For the shareholder proposal for the election of 11 directors by Mr. Wada (who was forced to resign in 2018 over a land fraud incident) and Mr. Fumiyasu Suguro, Glass Lewis recommended to vote to elect four slate directors including Mr. Wada and Mr. Suguro.
Sekisui House commented on Glass Lewis' recommendations: "We disagree with the report in some aspects, but it is good to see that the company-proposed slate directors should compose a majority of the board for the continuity of the business."